tv Boom Bust RT March 26, 2020 4:30am-5:01am EDT
nation's philip morris is trying to use i.d.'s to stop tour of the white from implementing new tobacco regulations aimed at cutting domestic smoking rates a fringe company sued egypt because egypt resists minimum wage democratic choice over trump corporate law joining us as we try to fund don't want to. boom bust the one business show you can't afford to miss unfair monteith in washington coming up markets rally for a 2nd straight day while countries around the globe plan more locked down for more spending we'll talk to economics professor of return of wolf about the latest
stimulus plan on capitol hill and if it will be enough to save the u.s. remember thresh an or even worse than there is a global rush to get more coben 1000 testing kits but the f.d.a. is putting money on hold we have a packed show for you today but let's start by tracking the coronavirus. the global death toll for the corona virus now at nearly 20000 with more than 430000 come from cases the world health organization recommended 6 actions that all government should take to prevent the spread of the coven 19 birds. your head was clear and probably killed workforce and. implement a system to fly every suspect to
a community level. so ramp up production capacity and i vill ability of. forth i didn't doubt. you would use to treat than i usually to patients the last 2 actions were to develop a clear plan for those who are quarantined and then refocusing government on suppressing the virus well europe still the epicenter of the covert 1000 as italy saw an increase once again in its death toll this after 2 similar days of numbers suggesting that the worst may not be over for the country spain also recorded a higher number of deaths with a total of 3434 this is the 2nd highest death toll in the world and the 2nd worst hit country in europe following italy and germany now has more than 35000 cases and a low number of only $181.00 deaths but even with
a comparatively low death toll president of germany's robert institute the national agency for disease control and prevention said that it's preparing for the worse. as of march 25th 31554 code 19 cases have been confirmed the number of cases rose by 4100 it needs comparison to the previous day we're talking about the cases that have been submitted electronically through the system of the rubber coach institute the death toll has risen to 14935 more than the previous days the actual number is 35 cases per 100000 citizens in germany right now as expected the number of cases has been growing and we are standing just at the beginning of an epidemic the numbers are growing now i want to show you where we're struction is have been tougher in some countries over others with nearly one 3rd of the world's population under some constraints there's india one of the latest to extend
a national lockdown joining italy france spain belgium the u.k. and new zealand than china iran the united states canada germany austria portugal russia australia and even israel all partially shut down but this could follow a full lockdown if the number of cases continue to grow exponentially now of these countries german lawmakers are voting on economic aid the u.k. also outlining plans for that aid as well as canada and russia and the european union also looking for ways to mitigate the economic impact but this while the u.s. is set to pass a nearly 2 trillion dollars stimulus package new york remains the epicenter of the united states outbreak where cases are doubling every 3 days state governor andrew cuomo says the senate bill won't be anough especially because at the current projection its peak won't be reached for another 21 days new york city hospitals
are already facing a surge in patients without enough workers as governor cuomo makes his plea for even more supplies will president trump responded to his request to twitter where he said. he's working very hard to help new york city and state adding fake news that i won't help because i don't like cuomo i i do just sent 4000 ventilators now for more numbers and information on the coronavirus be sure to check out our portable dot tv up and look for the section at trucking coronavirus but for more market analysis we bring in boom bust co-host christine christie. now futures pared gains overnight as the white house and senate struck an agreement on the historic 2 trillion dollar deal to aid the economy and face the coronavirus the brief pullback came as a bill would ban stock buybacks for the term of the government assistance plus one year on any company that received a government loan from the bill as the market digested the new sentiment quickly turned positive as the market accepted it and then there was no new incremental punishment and that company's doing buybacks the u.s.
equity market finally turn around and post its 1st back to baghdad since the corona crisis began with the dow up over 5 percent following its historic 11 percent surged or oil names like chevron and exxon rally double digits along with airlines automakers and homebuilders the in the charge but how long before this down the sold off right now the stimulus measures are moving the markets on sentiment which is much faster than underlying fundamentals which would take more time to rebound so now let's talk about this bill this bill worth roughly 10 percent of the total u.s. output is primarily aimed at stabilizing key national industries to prevent as many layoffs as possible now in addition to the $500000000000.00 going towards big businesses and the $350000000000.00 going towards small businesses there will also now be a 30000000000 dollars in emergency education funding $25000000000.00 in transit funding and $30000000000.00 for the disaster relief fund unemployment insurance will be extended to 4 months an increase to $600.00 per week with most workers
eligible for coverage but it is still too early for celebration right now as democrat led house is now delaying the spot for no reason at all until tomorrow spite this being a matter of most urgency one of the last details to close now a vote on the $500000000000.00 for guaranteed subsidized loans to airlines and hospitals but even as the song and dance the politics are coming to an end comes the really hard part the implementation and the execution the focus for investors now shift to when the funds will be disbursed and how fast millions of workers have already lost jobs in recent weeks and coming. are unable to operate but even as the markets rally and sentiment seems to have improved today one of the biggest questions on everyone's mind is was this the correct move history has shown that the government always used a crisis from the civil war to the great depression in order to expand its power not only during the emergency but also afterwards the u.s. spends just short of 5 trillion dollars a year and yet it was woefully ill prepared for this crisis and now in the middle
of this crisis in the middle of implementing a stimulus package you know politicians see an opportunity that cannot be wasted and advancing some sort of agenda this expansion of government authority is dangerous but in short it is what we created and are must be responsible for now well chris christie a companies that binge on stock buybacks for example boeing and southwest airlines they're now seeking taxpayer bailouts just to keep them alive now is this going to cause more restrictions in the future for these buybacks. that's actually why the futures dipped overnight because all the investors were afraid that there will be futures punishments for these companies but now according to the current techs that they've been chewed up there is no incremental punishment aimed at these companies repurchasing their stocks so what that means is with the trillions injected into this cut economy everyone will essentially benefit from the fed's liquidity not just the companies directly receiving the government loan so basically currently as
it stands when all this is over if there is no new legislation issued the record number of buybacks will explode even higher as every single company will do everything in their power to recover pre-crisis levels that's been a bipartisan issue these buyback so we'll see what happens in the near future because i'm sure that will be affected boom bust co-host christi i think you. thank you now for more on all of this and what this means for the global economy we're joined by professor emeritus at the university of massachusetts amherst and host of economic update richard wolfe thank you so much for this time there's a lot to get into this volatile market a lot has happened in the last 48 hours alone now i want to start by asking you st louis fed president james bullard he's been very vocal lately appeared in the media almost every day you could say will he said the economy will take a huge short term hit but it will essentially bounce right back up now this is after he just said that the unemployment would skyrocket to 30 percent now to be
clear that's worst than during the great depression in 1933 it was about 25 percent now is this bounce back going to happen or are we going to see more of an al shaped recovery. the answer the honest answer is that nobody knows and i am are amazed that mr willard would be as confident about such an iffy proposition as he seems to be it would be nice to believe all of that but there is no historical basis for doing it let me pick up on one point you made in 1033 the depth of the great depression unemployment was registered at its peak of 25 per cent if mr bullet is right and there are others who were agree with it we are going to have a worse condition of unemployment now 100 employment goes up right along like this every conceivable still szell problem we have
a little child that you did poorest you name it goes with it that's one of the reasons you can't ice a billy predict the next fall out of all of this everything that government has done since we 1st learned about the a coronavirus in december of last year has been too little and way too late and my judgment as best i can see it now is that this bill assumably in the form it takes one. will also be true little and too late well a lot of people are saying like you just said it too little too late if including a lot of the closures but i want to get back to something you said we have been talking about the great depression people were throwing out the r word that the recession before that a lot of commentators a lot of analysts now using depression not just recession but a possible to prashant like you're saying now is this something that you think will
actually happen. i think it's already underway i think at this point the only debate which we can answer is how deep it will go and how long it will last you cannot put an economy on. under this kind of stress which is a matter of life and death for millions of people with a government obviously unprepared with a private sector of medical care utterly understaffed underprepared we still don't have the tests in many parts of the country even germany where the wrist is where it's growing let alone the capacity to cope if you put this kind of an economic career. on top of held existed like there's no one can predict where it's going on or that there's a we are at the early stages of the very serious crises in his overalls
just the mini and the united states hasn't even seen the peak yet so what that will do the economy time will only tell but i do want to ask you about the federal reserve they just announced they continue to make most of their own announcing it's going to suspend some of its supervisory activities of certain banks so that they can be more flexible in the way that they actually help their customers could this lead to banks taking some unnecessary risks. absolutely has done that every other time aid the amount of money being thrown at the banks is unprecedented and now to ed as if it were necessary that there's going to be less supervision these are the banks let me remind you these are the same bank over the last 10 years have been convicted and finding their billions of dollars literally for violating every rule that if i do sherry or a banking institution is supposed to follow the trust with western provision when
you throw at the president of money that's a government that has a lapse in any claim to be independent of respect there but i'm richelle really said there is supposed to govern well this definitely will be a huge risk and like you said time will only tell unfortunately we don't know how much of that we actually have before this pandemic reaches its peak here in the united states like we're seeing across europe host of the economic update richard well thank you so much for your time and expertise my pleasure thank you. vehicle production for top u.s. automakers may be shut down well into april now this is according to reuters ford general motors and chrysler all say the original plan to restart plants on march 30th is highly unlikely michigan's governor gretchen whitmer has banned non-essential businesses from operating until at least april 13th but the report says what more has not said whether or not auto production is considered essential
meanwhile a number of factory workers tell n.b.c. news plants should have been shut down even sooner than last week now some of the employees say the nature of their workforces them to actually be within recommended 6 feet for social distancing and surfaces are difficult to disinfect all 3 automakers have had employees test positive for the code 19 but deny any wrongdoing united auto workers union president rory gamble says we are doing all that we can to protect our health and safety during this pandemic time now for a quick break but hang here because when we return we'll tell you why boeing wants a bailout but not if it means the government gets the date. the stock market i could imagine trading in a 1000 again on the dow and that would be an appropriate level given the true
underlying economic factors the bond market interest rate should be 45 percent in the 30 day interest rate ok that would mean bonds would be down 506070 percent but that's that's a rate that's return to a normal valuation and that's what we need right. i can't show you my face but i'm going to teach you must. was sentenced to death. charged with capital murder even though he didn't have the gun didn't pull the trigger didn't intend to kill anybody imagine living in your bathroom. with his son of a $23.00. i don't doubt that i deserved to be. confined within. the choosing. to leave this room.
in the midst of the congress the 2 trillion dollar economic bailout there are certain industries that have been clamoring for help among those is the airline industry and among the calls for a bailout help has been us aerospace company boeing the boeing c.e.o. is now making clear that he does not want the u.s. government to take an equity stake in the company as part of any bailout well during an interview on fox. business boeing c.e.o. david calhoun said i don't have a need for an equity stake i want them to support the credit markets provide liquidity allow us to borrow against our future which we all believe in very strongly and i think our creditors will too well joining us now to discuss co-host and investigative journalist pence won ben boeing's always on the headlines these days isn't it well president. president making clear that it's important to support the airline industry and including boeing which is also the nation's largest exporter calhoun now saying that this bailout is not corporate welfare and the
instead it's the role of the government to help them now is that even a fair statement and how much money is going asking for ok so how much money is going asking for how about $60000000000.00 they're asking for which is an unbelievable amount of money but as to the question as to whether or not it's the he's right that it's the government's role no it's not it is not the government's role to bail out companies that are falling apart it doesn't matter how important those companies are ultimately to the nation's largest exporter no matter how many people they employ i wonder how many jobs are connected to them it doesn't matter it is not the government's role to bail out companies now having said that 2 trillion dollars has been approved by the senate essentially to do exactly that to bail out u.s. workers in theory and to bail out some corporations and a lot of that money as you know where it's going to go to the airline industry on a lot of levels but boeing let's be honest boeing is not an example of a company that was hit hard by the coronavirus go in is an example of a company that had already failed by creating the 737 max jet that crashed twice
killed over 300 people and it was unable to sell jets because the main one the f.a.a. has not approved of them flying those jets and there were 2 airlines don't want to use their right and the company like you said was already failing a lot of people really lost trust in boeing after that but speaking of the 7 $37.00 max boeing says it plans to restart its production by may that's ending month long haul triggered by a safety ban on its best selling jet right so that is an earlier timeline that had been expected now is that timeline even realistic. well so it's i don't think it is realistic 1st of all especially considering right now the climate that we're in consider the fact that boeing essentially came out and said that they saw the. 737 max should be recertified by april that's why they're saying it's been pushed back to may it has been pushed back to may because the f.a.a. was saying it's not going to happen to at least sometime in the summer so that boeing that's making the claims about the timeline but then again why shouldn't we
believe them boeing employees were the ones who were making fun of the f.a.a. making fun of oversight at one point before these jets crashed because they don't feel like they have to respond to the f.a.a. right we thought that they they were expecting and by now they're pushing that date to may well we have about a minute left but i want to ask among those asking for the federal bailout is the private jet and 3 well the national business aviation association which represents private companies and corporate jets sent a letter to congressional leaders saying that their industry is facing financial uncertainty should the private jet industry even be included in this airline or aviation bailout so at 1st blush i think most people would look at that and say absolutely not it's obscene and ridiculous that private jets that only wealthy people in corporate jets would be bailed out that's insane but at the same time i think you can also make an argument why wouldn't they be along with everyone else because why is it the taxpayers responsibility to keep delta of float southwest afloat or boeing afloat so if you're going to keep all those others afloat why not
keep them afloat i don't agree with any of it i don't i don't like any of that getting bailed out but certainly i think the majority of people will look at the idea of the private jet industry is being bailed out and think it's not only laughable but it's obscene but i guess one could argue the other side too and say that these are considered technically a small business one could say for these are absolutely small businesses for these and if you and if you're going to bail out other small businesses why wouldn't they be included as well i think it's the idea that only the wealthy use them and therefore give it will get that rap but at the same time i think a lot of people would look at it and say if you're being honest i have a lot of rallies who are. pilots that's understandable to oh well the invesco most fence on thank you for your insight. thanks for. all the world health organization is urging countries to step up testing for the krona virus the united states is still struggling to get people tested more than 2 months after the 1st case was confirmed here well some people have even turned to home testing kits but now the feds have put a stop to selling those legal journalist molly barrows with american lawyer has
more on just why what's the problem with these home testing kit. hi sarah well the f.d.a. in a nutshell said hey we're not sure if we can trust the results of your test because there are some differences in this home swab test kit approach as would be in say certified medical lab they use a longer q-tip if you will to really get up in there if that's a picture you want in your head in the home setting kids have a smaller swab and they basically want to make sure that when they get the results that they're going to be as effective or the deal be able to be believed if you will so that's the problem with them testing kits that's why the f.d.a. sent out a warning letter to 2 companies in particular and some other companies that were start ups essentially 2 out of san francisco trying to market these to people saying hey we know there's a problem of testing with a plan to send out thousands until the f.d.a. sent out this letter and telling them to hold up well what are the chances that they will eventually be able to use these tests. hopefully pretty good now the
company won't come out and say it was 2 out of san francisco that have brought primarily been the focus norks and carbon health and in fact one of those tests was about 160 $770.00 somewhere in there so you're talking about thousands of tests they were going to roll out for that cost they did have some customers take them and so there are those test results they say they've asked to be expedited but they're not taking any more tests right now they say they are in communication those are what the f.d.a. so it's possible. if the f.d.a. rather gives them the go ahead that they can go ahead and remarket those because part of the approach was to deal with that shortage of test kits the lack of access to testing that we had been seeing why are more people actually getting it getting tested now here in the united states and what other steps are being taken in the lab to come about the virus. yes so we have seen a surge in testing for a number of reasons basically they had to cut through a lot of government red tape which was part of the slowing of the process in the beginning so more people are getting tested more private labs are part of the
process hospitals that sort of thing so people are still struggling here and there but they definitely are finally getting some tests when they need them turkey in fact sent 500000 tests at the request of the united states you've got india that just came forward with a $3.00 inexpensive test kit they can get test results quickly but part of the problem is not everybody still has access to those test kits and even there's a shortage of testing materials so one of the other ways that labs are combating it though 3 is by finding an antibody we've got a few medical companies and academic labs here in the united states that are working to identify people that have basically built up an immunity if they've got those antibodies they're not showing symptoms they're not sick then hey we can identify who can get back to work and who can get our economy and i know they're using those in new york and california and all hands on deck to get those tests out molly barrows contributor with america's lawyer thank you for your time. thanks they're. staying at home to stop the spread of the coronavirus is something serious but now it's also
a game so if you like some competition it's time to play the abs only which is owned by snap chat is using location data to keep track of those doing the best at social distancing now before the app would let you check into your favorite meeting spots or help you even find friends but in a twist to keep you at home there's a leader board now to see who among your friends is number one at staying put certainly also offers an option to scan the globe of your country to see how many come from corona cases there are now giving you a little extra motivation to stay inside and that's it for this time but you can catch boom bust on demand on the brand new portable t.v. up available on smartphones google play and the apple app store by searching horrible t.v. or stream must buy your on your t.v. by downloading the portable t.v. on an apple t.v. and online at portable dock t.v. and as always check this out on you tube dot com boom bust r.t.c. and x. time.
you know what i mean maybe up there see i don't think about the last act at all many of us grown men not near our bar. i kind of were on the bishop on the course of the now i think it's hard enough. members of the african mafias conway's them safe and quick passage to europe but once they. leave they are enslaved the country church europe. will not some of the libya mama not under you know if this unit can get it out to him. from the cinquera. they sold the.
lead. on court of the import of data because the persona that i can't even. be the normal any. one else chose seems wrong but old rules just don't call. me new world yet to shape our disdain comes to agitate and in games from an equals betrayal. when so many find themselves worlds apart we choose to look for common ground. trade and investment have become magic spells to conjure economic development. most
people think about trade they think about goods and services being exchanged between countries and the invest for charter of a trade agreement is about something very different but what when investment leads to toxic manufacturing that destroys sacred sites all the environment. that means if local communities that are being poisoned if they have jacked if they do anything that the company feels is interrupting their profits they can be sued multinationals are taking on the whole nation philip morris is trying to use i.s.t.'s to stop tour of the way from implementing new tobacco regulations aimed at cutting domestic smoking rates a french company sued egypt because egypt resists minimum wage democratic choice over trump corporate law joins us as we try to find don't want to party.
in the headlines for moscow this thursday march the 26 france announces a military driven operation to clamp down on the spread of covert. as the global economy tries to button down there and survive an ever growing public loft. here russia registers its 1st 2 deaths from covert 90 as new measures to hold the spread of coronavirus come into force coming up we meet russians who've been part of the country's 1st line of defense. after returning from hotspots abroad i flew out from italy i thought it would be safer to just get out and back to moscow i'm currently in the safest place. also ahead to a u.k. court did noises.